Assistant City Manager Adam Zettel told City Council on Monday that the city will apply to have two properties demolished under the program and will see how successful it is before deciding whether to participate further.

"It's going to appear that we're underutilizing this Neighborhood Stabilization Program ... but the best interest of the city is just doing these demos and calling it good," he said.

The Neighborhood Stabilization Program is part of the Housing and Economic Recovery Act that was passed in July, and Genesee County is getting $7.5 million from the U.S. Department of Housing and Urban Development to stabilize home values in neighborhoods outside of Flint.

The Community Development Block Grant program will get the funds, which must go toward the purchase and rehabilitation or demolition of foreclosed properties in neighborhoods where home values could be stabilized. The properties will eventually be sold, rented or developed into parks or community centers.

Homes would be purchased at 90 percent of the appraised value and then sold for only the amount spent on the home, including costs for rehabilitation.

The Genesee County Land Bank will own and maintain the properties purchased in the program. City officials are concerned, as the one property the Land Bank currently owns in the city is the only one that doesn't get its lawn mowed.

"The Land Bank is a fantastic organization, but their charge is tremendous," Zettel said.

The program is meant to be a revolving one, and revenues from home sales will go to the purchase of new properties.

Zettel said if the program is successful, the city will apply for future rounds. In the meantime, officials will keep a close eye on its foreclosed and abandoned properties. The city can buy and rehabilitate properties in extreme cases, he said.

Council members C. David Hurt and Mike Shumaker said at Monday's meeting they felt the council's decision was a good one.

"I'm very uneasy about taking free money because there usually are problems that come along with it," Hurt said.